AZZ (NYSE:AZZ) vs. Nano Magic (OTCMKTS:PENC) Critical Analysis

AZZ (NYSE:AZZGet Rating) and Nano Magic (OTCMKTS:PENCGet Rating) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation & Earnings

This table compares AZZ and Nano Magic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AZZ $902.66 million 1.16 $84.02 million ($1.05) -39.97
Nano Magic $4.33 million 0.36 -$50,000.00 N/A N/A

AZZ has higher revenue and earnings than Nano Magic.

Risk & Volatility

AZZ has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Nano Magic has a beta of -0.61, suggesting that its stock price is 161% less volatile than the S&P 500.

Insider and Institutional Ownership

88.5% of AZZ shares are held by institutional investors. 1.7% of AZZ shares are held by insiders. Comparatively, 56.0% of Nano Magic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares AZZ and Nano Magic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AZZ -2.46% 15.04% 5.30%
Nano Magic -14.10% N/A -24.11%

Analyst Ratings

This is a summary of current recommendations and price targets for AZZ and Nano Magic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AZZ 0 1 1 0 2.50
Nano Magic 0 0 0 0 N/A

AZZ presently has a consensus price target of $48.50, indicating a potential upside of 15.56%. Given AZZ’s higher possible upside, analysts plainly believe AZZ is more favorable than Nano Magic.

Summary

AZZ beats Nano Magic on 10 of the 11 factors compared between the two stocks.

About AZZ

(Get Rating)

AZZ Inc. offers galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally. The company operates through two segments, Infrastructure Solutions and Metal Coatings. The Metal Coatings segment offers metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to the steel fabrication and other industries. It serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical, and general industrial markets, as well as original equipment manufacturers. The Infrastructure Solutions segment provides products and services to support industrial and electrical applications. It offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, and tubular products, as well as solutions and engineering resources to multi-national companies. This segment sells its products through internal sales force, manufacturers' representatives, distributors, and agents. The company was incorporated in 1956 and is headquartered in Fort Worth, Texas.

About Nano Magic

(Get Rating)

Nano Magic, Inc. engages in the development, marketing, and sale of consumer and industrial products enabled by nanotechnology. Its products include nano-layer coatings, nano-based cleaners, printable inks and pastes, and thermal management materials. It operates through the following segments: Product and Contract Services. The Contract Services segment focuses on the design and development services for future products and for government and private entities and sales of products developed for third parties. The Product segment develops, manufactures, and sells consumer and institutional products using nanotechnology. The company was founded in 2014 and is headquartered in Bloomfield Hills, MI.

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